Colonial BancGroup plan rejected by three of five voting classes

By Caroline Salls

Pittsburgh, May 2 - The Colonial BancGroup, Inc.'s plan of liquidation was rejected by three of five voting creditor classes, according to a Friday filing with the U.S. Bankruptcy Court for the Middle District of Alabama.

Votes by classes included:

• All 15 holders of convenience claims voted to accept the plan;

• A total of 24 holders, or 80% in number, of $4.09 million, or 1% in amount, of general unsecured claims voted to accept the plan, while six holders, or 20% in number, of $308 million, or 99% in amount, of these claims voted to reject it;

• A total of 675 holders, or 95% in number, of $196 million, or 96% in amount, of indenture claims voted to accept the plan, while 32 holders, or 5% in number, of $7.73 million, or 4% in amount, of these claims voted to reject it;

• All four holders of $1.86 million in statutorily subordinated claims voted to reject the plan; and

• A total of six holders, or 23% in number, of $43.99 million, or 26% in amount, of preferred stock claims voted to accept the plan, while 20 holders, or 77% in number, of $126.68 million, or 74% in amount, of these claims voted to reject it.

The plan confirmation hearing is scheduled for May 11.

Colonial BancGroup is the Montgomery, Ala.-based holding company for Colonial Bank. The company filed for bankruptcy on Aug. 25, 2009. Its Chapter 11 case number is 09-32303.

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